This quote from the March 2011 Notice makes it pretty clear they are not talking about "sponsored" pilots:
No, I dont see any text there mentioning this exclusion you envision for "Sponsored Pilots".
They did specifically mention that folks are MISTAKENLY thinking they are allowed to fly as hobby when they actually cant.
How can you say that by you believing you can fly as hobby
proves you are not the one mistaken about it.
For example: Flying a RC helicopter with a camera for fun is fine. Flying an RC helicopter in order to be paid by someone for taking photos is not.
Oh, I can do one too:
Flying a RC Helicopter with a camera for fun is fine. Flying an RC Helicopter in a demo in order to sell product is not.
If what you believe to be a clear open and shut case that is obvious that Demos Are Hobby,
can you explain whay Ilona at AMA completely didnt say that,
to the point that she recomends getting non-AMA insurance because the commercialness of demos is too much for even AMA to accept?
But it seems its not too much for you, you decree SponsoredDemo has some yet unseen specific FAA acceptance.
Should folks listen to AMA or you?